Auto Factory Turnaround Strategy Based on 4 Lean Tools [Case Study]

Many Chinese factories suffer from poor performance and have a bleak outlook. They know they are headed in the wrong direction. Yet they are not sure what to do.

Actually, it is possible to cut the variable costs of a poorly managed factory by 30-60% in just 18 months!

A legitimate question is, how to do this? This case study explains...

Lowering Costs, Improving Quality, AND Boosting On Time Delivery. Is It Possible?

MTG have pulled this off several times, and has published a case study about this:

Hunter Auto Factory Turnaround Strategy Case Study

In this case study we explain what we did to achieve very strong results in only 9 months. What we did is quite representative of what is possible in many Chinese factories.

If you are looking for ways to cut the costs of your China manufacturing operations while improving your quality and delivering faster to customers, then this case study is for you.
Keep reading to see what's included in more detail.

Factory Turnaround Strategy Based On 4 Lean Tools

In China, most managers don’t believe there is a vastly superior way of running their businesses. They have, for the most part, never seen or even heard of an effective turnaround.

However, when the right levers are pressed, results can come in fast. As often in a crisis situation, there are serious URGENT issues (e.g. customers threatening to pull their business) and IMPORTANT issues (e.g. processes are in a bad state, staff doesn't know how to maintain it properly…). This case study shows a somewhat typical factory turnaround situation where we aimed at improving many areas of operations simultaneously.

The FREE case study “Hunter Auto Factory Turnaround Strategy  in China” covers the following topics:

• How a value stream map can be used to pinpoint system inefficiencies
• The relationship between work-in-process inventory and production lead time (which is surprising to most factory managers)
• What lean manufacturing tools can be put in use in just a few weeks, for a strong increase in efficiency (number of pieces per labor unit)
• Why purchasing large batches, in order to save a per percentage points, ends up costing much more to a factory
• Why setting rules, potentially based on customer classification (A, B, C, D), helps keep a firm planning and avoid production disruptions
• How staff training, process control, and a strong quality planning, can set a manufacturer on the path to continuous improvement

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Again, the variable costs in a poorly managed factory can be cut between 30% and 60%. And at the same time customers can be better served.

This objective is quite appealing, but most Chinese manufacturers would reject it as impossible. They need to see HOW it gets done.

MTG have done just that – showing HOW a factory gets changed from the inside, in this case study based on our work in an Auto parts factory.

Are you ready to get your copy? Just click the button below to request your free download!